ENG-2015 — Page 110

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Financial and Monetary Affairs

MPF accrued benefits, that is, accumulated mandatory contributions and investment returns, must be preserved until a scheme member reaches the age of 65 or meets a statutory condition for early withdrawal of benefits.

Occupational retirement schemes operated under the Occupational Retirement Schemes Ordinance (ORSO) are voluntary schemes set up by employers. Before the launch of the MPF System, operators of ORSO schemes had the option to apply for exemption from MPF requirements.

Statistics on MPF Schemes and MPF-exempted ORSO Registered Schemes (year end)

2013

2014

2015

Number of MPF-enrolled participants

(Estimated rate)

Employers

264,400

271,500

276,000

(99%)

(99%)

(100%)

Relevant employees

2,485,300

2,506,600

2,549,000

(100%)

(99%)

(100%)

SEPS

212,400

208,000

205,000

(62%)

(66%)

(68%)

MPF schemes

Number of registered schemes

41

38

38

Number of approved constituent funds

477

458

459

Aggregate NAV ($ billion)

514

565

591

MPF-exempted ORSO registered schemes

Number of schemes

3,601

3,500

3,382

Number of participating employees

351,497

341,894

338,000

Aggregate NAV ($ billion)

273

278

289

Mandatory Provident Fund Schemes Authority The Mandatory Provident Fund Schemes Authority (MPFA) was established under the Mandatory Provident Fund Schemes Ordinance to regulate, supervise and monitor the operation of the MPF System. It is also the Registrar of Occupational Retirement Schemes. Its objectives are to ensure compliance with the MPF legislative requirements and protect the interests of scheme members. The MPFA monitors MPF trustees and their service providers, investigates cases of non-compliance, conducts inspections, and takes enforcement actions where necessary. It also arranges programmes to strengthen the public's understanding and publicise new developments of the MPF System, and educate scheme members on MPF investments.

Recent Developments

The Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 was enacted by LegCo in January. It includes legislative amendments to increase flexibility in withdrawing MPF accrued benefits by adding the option of a phased withdrawal of benefits upon retirement or early retirement, to streamline the MPF schemes' operational procedures to provide greater scope for MPF fee reduction, and to enable more effective enforcement to protect scheme members'

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